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Capacity Management

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ample: ngineers design engines and assembly lines to
operate at an ideal or ³best operating level´ to maimize
output and minimize ware

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Three 100,000 units-per-year machines are available
for small-bottle production. Two operators required
per machine,

Two 120,000 units-per-year machines are available


for family-sized-bottle production. Three operators
required per machine.
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150,000/300,000=50% At 1 machine for 100,000, it
½  takes 1.5 machines for 150,000
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 100,000, it takes 3
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Answer: b. Increase ³capacity used´ (This


increases the numerator in the Capacity
Utilization Rate ratio, which is desirable.)
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Answer: d. All of the above

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Answer: d. All of the above

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Answer: d. All of the above
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